Got $200? 1 Copper Stock to Buy and Hold Forever

This copper stock is worth its weight in gold. Or actually, in copper! Given that the price of the material has climbed past US$10,000.

| More on:

Investors may already have their eye on this commodity. The price of minerals has been surging higher and higher. And yet one still remains a little behind the scenes, and that’s copper. Copper stocks in turn have seen their share prices surge as the price passed US$10,000 recently. So what’s going on with copper stocks, and should you buy?

Why copper 

Investors might consider investing in copper stocks for several reasons. Copper is a crucial industrial metal, widely used in construction, electronics, transportation, and infrastructure. As economies grow and urbanize, the demand for copper tends to increase, making it a valuable commodity to invest in.

Furthermore, copper is needed for the shift we’re seeing both in renewable energy and tech. The shift towards electric vehicles and renewable energy sources like wind and solar power requires significant amounts of copper for wiring and components. As these sectors continue to expand, the demand for copper is expected to rise, potentially increasing the value of copper stocks.

Yet while all this is happening, commodities like copper are often seen as a hedge against inflation. When inflation rises, the prices of goods and services increase, leading investors to seek assets that can retain their value. Since copper has intrinsic value and is in demand across various industries, investing in copper stocks can offer protection against inflationary pressures. Hence why the price has surged so high. But there’s a way to get in on the action.

Lundin stock

By finding companies that focus on copper production, investors can get in on the climbing price of copper – and even more upside if they find copper stocks that are doing well in today’s market. One such company is Lundin Mining (TSX:LUN).

Lundin stock has been seeing its production climb, especially when it comes to its forecast for 2024. Copper production is forecast to be 366,000 to 400,000 tonnes on a consolidated basis in 2024. What’s more, this should continue to climb through 2026.

Furthermore, cash costs are coming down on average as well. The company achieved a cash cost of $2.07 per pound of copper in 2023. This should then increase only slightly based on guidance to around $2.125 per pound. Meanwhile, as the company sees earnings grow and cash costs remain stable, Lundin stock should continue to offer a strong dividend. This currently sits at 2.27% as of writing. So with shares still trading at around $16 per share, it’s a copper stock that looks like a huge deal.

Bottom line

Analysts and economists alike are quite positive about the future of copper stocks. But of them all, Lundin stock looks like a clear winner. In fact, the consensus price target is currently at $133, as of writing. That would indicate a potential upside of 731% at the time of writing this article! And with shares already up 56% in the last year, it’s looking quite doable at this rate – especially with a balance sheet and outlook as strong as we’re seeing right now.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Stocks for Beginners

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

How to Use Your TFSA to Earn Ultimate Passive Income

If you have a TFSA, then you have the key to creating ultimate passive income. All you need is a…

Read more »

Hourglass and stock price chart
Dividend Stocks

Goeasy Stock: Is It Heading for a 52-Week High?

Goeasy stock has been edging higher, especially after another record-setting earnings report. So are 52-week highs in sight?

Read more »

bulb idea thinking
Stocks for Beginners

2 Stocks That Could Help You Get Richer in 2025

It’s time to prepare for 2025 before you leave for the holidays. Here are two stocks that could make you richer…

Read more »

Middle aged man drinks coffee
Stocks for Beginners

The Best Investment Hack Every Investor Should Know

An investment hack doesn't have to be risky, tricky, or any of those scary ideas. In fact, it can be…

Read more »

Investor reading the newspaper
Stocks for Beginners

A Better Post-Earnings Buy: Restaurant Brands or Lightspeed?

These two retail stocks have come out with earnings, but which is the clear long-term winner for investors?

Read more »

a person watches a downward arrow crash through the floor
Dividend Stocks

3 Everyday CRA Red Flags Investors Should Really Know

The CRA can be a blessing and a curse, but if you make sure to follow the rules and not…

Read more »

Train cars pass over trestle bridge in the mountains
Dividend Stocks

Canadian National Railway Stock is on Sale: Why Now is the Time to Invest

CNR stock has long been a top stock, with a solid position in a railway duopoly. But right now is…

Read more »

ETF stands for Exchange Traded Fund
Dividend Stocks

This 7.9% Dividend Stock Pays Cash Every Month

We all want dividends, and having them come out monthly is ideal! But this might be a strong choice for…

Read more »